Helsinki, Finland, 2013-08-06 08:00 CEST (GLOBE NEWSWIRE) --
Ixonos Plc Interim report 6 August 2013, 9.00
Interim report for the period 1 January – 30June 2013
Q2/2013 in brief: (last year's reference figures inside brackets)
- Turnover for the second quarter was EUR 10.1 million (2012: EUR 16.4 million), a change of -38.4 per cent.
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) was -0.1 MEUR, -1,4 percent of turnover, (2012: -0.2 MEUR, -0.9 percent of turnover).
- Operating profit was EUR -0.9 million, -8.5 percent of turnover (2012: EUR -1.3 million, -8.1 percent of turnover), -8.5 per cent of turnover.
- Net profit was EUR -0.9 million, -9.2 per cent of turnover (2012: EUR -1.1 million, -6.6 percent of turnover),
- Earnings per share were EUR -0.03 (2012: EUR -0.05).
Review period in brief:
- Turnover for the review period was EUR 20.9 million (2012: EUR 34.1 million), a change of -38.7 per cent.
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) was -1.3 MEUR, -6,3 percent of turnover, (2012: -0.3 MEUR, -0.9 percent of turnover).Operating profit was EUR -2.8 million, -13.3 per cent of turnover (2012: EUR -11.8 million including goodwill impairment of EUR 9.2 million, -34.6 percent of turnover)
- Net profit was EUR -2.6 million, -12.3 per cent of turnover. (2012: EUR -11.3 million, -33.2 percent of turnover),
- Earnings per share were EUR -0.08 (2012: EUR -0.51).
- Net cash flow from operating activities was EUR -4.7 million (2012: EUR 1.8 million).
Future prospects in brief:
Ixonos keeps its guidance for 2013 unchanged: Estimated turnover for 2013 to be in the range of EUR 40 - 50 million. EBITDA for the entire year is expected to be positive. EBIT in the second half-year is estimated to be better than in the first half.
Esa Harju, President and CEO:
"Our change process towards profitability recovery and positive cash flow has continued during the second quarter of the year. Whilst our turnover has decreased, as expected, we have been able to improve our profitability both in comparison to the respective quarter last year and the first quarter this year. We have been able to slow down revenue decline almost completely during the second quarter, and this was in fact the first quarter for quite some time with improved year-on-year profitability.
We have been successful in reducing our costs in many areas, in line with our plans. In Finland we implemented personnel savings via cooperation negotiations, which impacted the whole personnel. These savings have started to have impact on our costs towards the end of the second quarter. We have also concluded the ramp-down of our software production sites in China and Estonia. Despite these savings, our cash position remains challenging, and we have taken measures to structure our financing, as announced on 22 July 2013.
We recruited two new members to Ixonos Group Management Team during the second quarter, and are now moving forward with the renewed leadership team & governance.
We have also taken measures to strengthen our Sales organization and processes during the spring, in order to be able to grow our customer base and to stabilize our turnover. The market environment in Finland and globally has clearly developed to a more challenging direction during the past months, as many customers have been cutting down their investments, and this is necessitating even more focus on sales.
OurDream, Design, Delivercustomer promise is clearly proving its value both for our established as well as new customers. We have been able to demonstrate in many customer projects our ability to deliver unique customer solutions, by combining our world-class Design capabilities with professional solution implementation skills.
Although our business has been loss-making during the first half of the year, we are expecting our profitability to continue to improve during the rest of the year. We will be facing a challenging market environment during the second half of the year, but we strongly believe that we are on the right path in developing our business and operations forward."
OPERATIONS
Ixonos is a creative mobile solutions company. We develop technologies, software and solutions for mobile devices and services. Together with our corporate customers, we design products and services that provide superior user experiences. We also improve the competitiveness of our client organizations by shortening the time to market for their devices and services.Our strategy is to position ourselves as a strategic partner to the leading innovators in the mobile and online industry.
We have offices in Finland, Denmark, Estonia, Germany, Great Britain, Slovakia, South Korea and the United States.
OurConnected Devicesservice area comprises of products and services for R&D of mobile devices. This includes professional services in software development, testing and system integration for mobile devices and embedded systems, as well as a broad range of device design and consultancy services for consumer electronics appliances and industrial equipment. The clientele comprises wireless technology suppliers, mobile device manufacturers, telecommunications companies, companies in various industries and entertainment electronics manufacturers operating on the international market. Customers include Cargotec, Huawei, Intel, Nokia, Qualcomm and Vodafone.
TheOnline Solutionsservice area encompasses products and services for the development of cloud services and mobile applications, as well as system integration and professional services for online service development. In Finland, the offering is accompanied by online solutions for e-commerce, e-government and service operations. The clientele consists of companies in the publishing, communications, telecommunications and service sectors and also includes Finnish public administration organizations. Customers include Al Jazeera, BBC, eZ Systems, Fonecta, Kone and Finnish Ministry of Finance.
OurDesign (former User Experience Design)service area includes design services and products for comprehensive user experiences. The services encompass brand-supporting design strategy consultation and concept development, innovation design and implementation as well as comprehensive design of wireless devices including industrial design, functionalities, user interface and applications. The customers include Marcopolo, MBC, National Geographic, Samsung, Sony and Warner Brothers.
SEGMENT REPORTING
Ixonos reports its operations as a single segment that comprises the three service areas described above: Connected Devices, Online Solutions and Design. The product and service offering of the service areas make up the company’s core business, which focuses on wireless devices, online services and mobile-application R&D.
TURNOVER
The company’s turnover in the second quarter was EUR 10.1 million (2012: EUR 16.4 million), which is 38.4 per cent less than in the previous year.
Consolidated turnover for the review period was EUR 20.9 million (2012: EUR 34.1 million), which is 38.7 per cent less than in the previous year. The main reason for the decrease in turnover was a change in strategy of the company’s single biggest customer during 2011 and 2012. During the review period, no single customer held a dominating share of the turnover and none brought in more than one fourth of the turnover.
FINANCIAL RESULT
The operating result for the second quarter was EUR -0.9 million (2012: EUR -1.3 million) and the result before taxes was EUR -1.1 million (2012: EUR -1.5 million). The result for the second quarter was EUR -0.9 million (2012: EUR -1.1 million). Second-quarter earnings per share was EUR -0.03 (2012: EUR -0.05). Cash flow per share from operating activities in the second quarter was EUR -0.04 (2012: EUR 0.06).
The company’s consolidated operating profit was EUR -2.8million (2012: EUR -11.8 million including goodwill impairment of EUR 9.2 million) and profit before tax was EUR -3.1 million (2012: EUR -12.0 million). Profit for the period was EUR -2.6 million (2012: EUR -11.3 million). Earnings per share was EUR -0.08 (2012: EUR -0.51). Cash flow per share from operating activities was EUR-0.14 (2012: EUR 0.08).
RETURN ON CAPITAL
Consolidated return on equity (ROE) was -62.4 per cent (2012: -95.2 per cent) and return on investment (ROI) was -24.3 per cent (2012: -69.7 per cent).
INVESTMENTS
Investments during the period totalled EUR 0.2 million (2012: EUR 1.2 million).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 31.0 million (2012: EUR 41.1 million). Shareholders’ equity was EUR 9.0 million (2012: EUR 18.1 million). The equity ratio was 28.8 per cent (2012: 44.2 per cent). The Group’s liquid assets at the end of the review period amounted to EUR 0.8 million (2012: EUR1.2 million).
At the end of the review period, the balance sheet showed EUR 12.2 million (2012: EUR 7.4 million) in bank loans. This amount includes overdraft in use.
The bank loans have covenants attached to them. These covenants are based on the equity ratio and on the proportion of interest-bearing bank loans to the 12-month rolling operating profit.
At 30 June 2013, the company did not meet the terms of the covenants. The company’s non-current borrowings are therefore presented as current liabilities, in accordance with IFRS. However, the company has received waivers from its lenders for the second half of the year.
GOODWILL
On 30 June 2013, the consolidated balance sheet included EUR 12.4 million in goodwill. This is EUR 2.0 million less than at the end of the review period in 2012. The amount of goodwill has been reduced due to impairment recognised in December 2012.
CASH FLOW
Consolidated cash flow from operating activities during the period was EUR -4.7 million (2012: EUR 1.8 million). By 30 June 2013, the company had sold EUR 3.2 million (2012: EUR3.9million) in accounts receivable so as to reduce their turnaround time.
PERSONNEL
The number of personnel averaged 542 (2012: 974) during the review period. At the end of the period, the company had 502 (2012: 894) employees. Staff decreased in Finland as well as abroad. At the end of the period, the Group had 371 employees (2012: 503) in Finnish companies, while Group companies in other countries employed 131 (2012: 391). During the review period, the number of employees decreased by 108.
SHARES AND SHARE CAPITAL
Share turnover and price
During the review period, the highest price of the company’s share was EUR 0.68 (2012: EUR 1.20) and the lowest price was EUR 0.22 (2012: EUR 0.79). The closing price on 30 June 2013 was EUR 0.28 (2012: EUR 0.87). The average price over the review period was EUR 0.35 (2012: EUR0.95). The number of shares traded during the review period was 8,941,212 (2012: 2,294,521), which corresponds to 25.4 per cent (2012: 15.2 per cent) of the total number of shares at the end of the period. According to the closing price on 30 June 2013, the market value of the company’s shares was EUR 9,866,956 (2012: EUR 13,139,161).
During the review period Ixonos completed a share issue directed to its present shareholders. All of the issued 20,136,645 shares, totalling EUR 4.23 million, were subscribed.
Share capital
At the beginning of the review period, the company’s registered share capital was EUR 585,394.16 and the number of shares was 15,102,484. At the end of the review period, the company’s registered share capital was EUR 585,394.16 and the number of shares was 35,239,129.
Option plan 2011
The Board of Directors of Ixonos Plc decided on 30 November 2011 to grant new options. This decision was based on the authorisation given by the Annual General Meeting on 29 March 2011.
The options were issued by 31 December 2011, free of charge, to a subsidiary wholly owned by Ixonos Plc. This subsidiary will distribute the options, as the Board decides, to employees of Ixonos Plc and other companies in the Ixonos Group, to increase their commitment and motivation. Options will not be issued to members of the Board of Directors of Ixonos Plc or to the Ixonos Group’s senior management (Ixonos Management Invest Oy shareholders).
The options will be marked IV/A, IV/B and IV/C. A total of 600,000 options will be issued. According to the terms of the options, the Board of Directors decides how the options will be divided between option series and, if needed, how undistributed options will be converted from one series to another.
Each option entitles its holder to subscribe for one new or treasury share in Ixonos Plc. The shares that can be subscribed for with options comprise 3.82 per cent of all Ixonos Plc shares and votes on a fully diluted basis.
The exercise period for the IV/A options will begin on 1 October 2014, for the IV/B options on 1October 2015 and for the IV/C options on 1 October 2016. The exercise periods for all options will end on 31 December 2018. The exercise price for each option series is a trade volume weighted average price at NASDAQ OMX Helsinki. The exercise prices will be reduced by the amount of dividends, and they can also be adjusted under other circumstances specified in the option terms.
The stock option program comprises 230,000 shares that are unallocated or have been returned to the company. Allocating these will be decided by the Board of Directors according to the schedule of series IV/C.
Shareholders
On 30 June 2013, the company had 3,456 shareholders (2012: 3,060). Private persons owned 53.2 per cent (2012: 55.5 per cent) and institutions 46.8 per cent (2012: 44.5 per cent) of the shares. Foreign ownership was 8.8 per cent (2012: 7.3 per cent) of all shares.
OTHER EVENTS DURING THE REVIEW PERIOD
Market events in the first half of 2013
At the beginning of 2013, Ixonos announced new accounts, including National Geographic Society and Firstbeat Technologies. Ixonos and Sharp Europe reported that they would collaborate to create mobile devices for mutual customers. Ixonos also announced that Samsung Electronics had chosen the company as its innovation partner, to focus particularly on developing the Android user experience. In the end of March, Ixonos reported that it was set to deliver the user experience design and software of the infotainment solution for the luxury coaches of Brazilian bus manufacturer Marcopolo. The solution is based on Ixonos IVI Connect ™ infotainment solution. In May Ixonos announced it had signed a new multi-million Euro contract expansion with an existing operator customer in Asia. The contract involves the user experience implementation for several device categories on a variety of operating systems. The expanded design and consulting service operations will continue into 2014.
A new product Ixonos Media Spark™ was launched in January 2013. In February, technology components for embedded systems, was launched. These components include a modern embedded Linux solution as well as a fast HD video streaming solution suitable e.g. for closed circuit TV. In May Ixonos brought out a unique service package for testing of smart electronic devices. The testing package includes support for R&D and type approvals which makes it the first of its kind launched in Northern Europe.
New registration document
On 21 January 2013, Ixonos published its registration document, which the Financial Supervisory Authority had approved on 17 January 2013, as provided in the Securities Market Act (746/2012). The registration document contains information about the company, its operations and its financial position. It is valid for 12 months from the date of approval. The new registration document includes a working capital statement noting that the company’s present working capital will not be sufficient for the company’s needs over the next twelve months, but that the company’s working capital will be sufficient for the company’s needs over the next twelve months if the company’s cash flow develops as forecasted and planned and if the share issue is completed in its entirety. However, there is no guarantee that the company will be able to fulfil its financial covenants under all circumstances. If the company cannot comply with its covenants, the financiers are entitled to e.g. call in the loans or renegotiate the terms of the loans. If required, the company negotiates with its financiers on additional financing. The management of the company trusts that should the working capital requirements cause a need for additional financing, the company will be able to meet that need.
Share issue
Ixonos Plc’s rights issue ended on 7 February 2013. All 20,136,645 shares offered were subscribed for. The number of shares after the issue is 35,239,129. A total of 19,052,212 shares were subscribed for with subscription rights. This amount corresponds to approximately 94.6 per cent of the shares offered. In the secondary subscription, 5,358,879 shares were subscribed for without subscription rights, and subscriptions for 1,084,433 shares were accepted. The subscriptions thus correspond to approximately 121.2 per cent of the shares offered. Ixonos raised approximately EUR4.23 million gross through the issue. As all offered shares were subscribed for, the underwriting commitments that had been provided were not used.
On 16 January 2013, because of the rights issue, Ixonos’ Board of Directors adjusted the subscription ratio and exercise price associated with the option rights in the 2011 option plan, in accordance with the terms of the options. The adjustment was made to ensure equal treatment of option holders and shareholders. It was announced in a stock exchange release on 13 February 2013.
Changes in the Management Team
During the review period the following changes have taken place:
- Esa Harju took up his duties as President and CEO on 1 January 2013.
- CFO Timo Leinonen left the company on 22 January 2013.
- New CFO Teppo Talvinko took up his duties on 1 February 2013.
- Vice President Pasi Iljin left the company on 11 April 2013.
- Bo Lönnqvist was appointed as the new head of Connect Devices business unit, as of 1 July 2013.
- Satu Roininen was appointed head of Human Resources, as of 8 July 2013.
EVENTS AFTER THE REVIEW PERIOD
Two new members joined the Group’s Management Team. Bo Lönnqvist joined Ixonos and took up the duties of the head of Connect Devices business unit on 1 July 2013. Satu Roininen joined Ixonos as head of Human Resources on 8 July 2013.
On 22 July 2013 Ixonos announced that its financiers had renewed the waiver for premature payback of covenant-bearing loans until 31.12.2013 and that it had secured a loan agreement for short term debt with Oy Turret Ab. The loan agreement enables, if necessary, additional financing for a maximum of 2.5 million Euros until the end of 2013.
RISK MANAGEMENT AND NEAR-FUTURE UNCERTAINTY FACTORS
Ixonos Plc’s risk management aims to ensure undisturbed continuity and development of the company’s operations, support attainment of the commercial targets set by the company and promote increasing company value. Details on the risk management organisation and process as well as on recognised risks are presented on the company’s website at www.ixonos.com.
Changes in key customer accounts may have adverse effects on Ixonos’ operations, earning power and financial position. Should a major customer switch its purchases from Ixonos to its competitors or make forceful changes to its own operating model, Ixonos would have limited ability to acquire, in the short term, new customer volume to compensate for such changes.
The reduction and rationalisation of the company’s operations cause one-time expenses, such as redundancy payments in various countries. This increases the company’s need for short-term financing. The company manages this need by creating, together with financiers, adequate buffers to ensure sufficient funds as well as by facilitating the circulation of working capital.
The company’s balance sheet also includes a significant amount of goodwill, which may still be impaired should internal or external factors reduce the profit expectations of the company or any of its cash generating units. Goodwill is tested during the final quarter of each year and, if necessary, at other times.
The company’s financial agreements have covenants attached to them. A covenant breach may increase the company’s financial expenses or lead to a call for swift partial or full repayment of non-equity loans. The main risks related to covenant breaches are associated with operating profit fluctuation due to the market situation and with a potential need to increase the company’s working capital through non-equity funding. The company manages these risks by negotiating with financiers and by maintaining readiness for various financing methods.
There is a risk that the company’s working capital will not be sufficient to fund the company’s operations over the next twelve months. Although the company considers that it will be able to cover its need for working capital over the next twelve months through various means, there is no guarantee that the company will be able to ensure sufficient working capital under all circumstances. A shortage of working capital may have a substantial adverse effect on the company’s operations, result and financial position.
LONG-TERM GOALS AND STRATEGY
In the long term, Ixonos aims to achieve an operating profit of at least 10 per cent. To reach its long-term goals, Ixonos focuses its strategy on deepening the company’s product, solution and service operations as well as on new accounts in selected industries.
Our value proposition – Dream, Design, Deliver – works best for customers for whom a short time to market and a well thought-through user experience are crucial. Our ability to combine design skills, productised solutions, advanced online services and device deliveries is at top level globally.
FUTURE PROSPECTS
In accordance with its strategy, Ixonos continues to strengthen and expand its customer base by focusing on offering products, solutions and services for technology suppliers, mobile device manufacturers, consumer electronics manufacturers, different industry segments and other customers in Finland as well as internationally.
By continuously rationalising its operations, Ixonos aims to restore positive cash flow and profitability.
Ixonos keeps its guidance for 2013 unchanged: Estimated turnover for 2013 to be in the range of EUR 40–50 million. EBITDA for the entire year is predicted to be positive. EBIT in the second half is estimated to be better than in the first half.
NEXT REPORTS
The interim report for the period 1 January – 30 September 2013 will be published on 25 October 2013.
IXONOS PLC
Board of Directors
For more information, please contact:
Ixonos Plc
- Esa Harju, President and CEO, tel. +358 40844 3367, esa.harju@ixonos.com
- Teppo Talvinko, CFO, tel. +358 40715 3660, teppo.talvinko@ixonos.com
Distribution:
NASDAQ OMX Helsinki
Main media
THE IXONOS GROUP
ABBREVIATED FINANCIAL STATEMENTS 1 January – 30 June 2013
Accounting policies
This financial statement bulletin has been prepared in accordance with IAS 34 (Interim Financial Reporting) and the accounting policies for the annual financial statement of 31 December 2012. The IFRS amendments and interpretations that entered into force on 1 January 2013 have not affected the consolidated financial statements.
Preparing the financial statements in accordance with IFRS requires Ixonos’ management to make estimates and assumptions that affect the amounts of assets and liabilities on the balance sheet date as well as the amounts of income and expenses for the review period. In addition, judgment must be used in applying the accounting policies. As the estimates and assumptions are based on views prevailing at the time of releasing the interim report, they involve risks and uncertainty factors. Actual results may differ from estimates and assumptions.
The figures in the income statement and balance sheet are consolidated. The consolidated balance sheet includes all group companies as well as Ixonos Management Invest Oy, a company owned by members of Ixonos’ management. The original interim report is in Finnish. The interim report in English is a translation of the original report.
As the figures in the report have been rounded, sums of individual figures may differ from the sums presented. The interim report is unaudited.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
| | 1.1.–30.6.2013 | 1.1.–30.6.2012 | Change % | 1.1.–31.12.2012 |
| Turnover | 20,911 | 34,089 | -38.7 | 56,852 |
| Operating expenses | -23,688 | -36,694 | -35.4 | -69,969 |
| OPERATING PROFIT BEFORE GOODWILL IMPAIRMENT | -2,777 | -2,605 | 6.6 | -13,117 |
| Goodwill impairment | 0 | -9,200 | -11,200 | |
| OPERATING PROFIT | -2,777 | -11,805 | -76.5 | -24,317 |
| Financial income and expenses | -356 | -209 | 70.2 | -700 |
| Profit before tax | -3,132 | -12,014 | -73.9 | -25,018 |
| Income tax | 570 | 690 | -17.5 | 3,043 |
| PROFIT FOR THE PERIOD | -2,563 | -11,323 | -77.4 | -21,975 |
| Attributable to: | ||||
| Equity holders of the parent | -2,641 | -11,308 | -76.6 | -21,948 |
| Non-controlling interests | 78 | -15 | -608.6 | -27 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, EUR 1,000
| Profit for the period | -2,563 | -11,323 | -21,975 | |
| Other comprehensive income | ||||
| Change in translation difference | 61 | 14 | -11 | |
| COMPREHENSIVE INCOME FOR THE PERIOD | -2,502 | -11,309 | -21,987 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, EUR 1,000
| ASSETS | 30.6.2013 | 30.6.2012 | 31.12.2012 |
| NON-CURRENT ASSETS | |||
| Goodwill | 12,447 | 14,447 | 12,447 |
| Other intangible assets | 2,078 | 4,625 | 2,646 |
| Property, plant and equipment | 2,735 | 4,051 | 3,410 |
| Deferred tax assets | 3,383 | 713 | 2,780 |
| Available-for-sale investments | 14 | 110 | 19 |
| TOTAL NON-CURRENT ASSETS | 20,656 | 23,946 | 21,303 |
| CURRENT ASSETS | |||
| Trade and other receivables | 9,495 | 15,951 | 11,551 |
| Cash and cash equivalents | 840 | 1,227 | 477 |
| TOTAL CURRENT ASSETS | 10,334 | 17,178 | 12,028 |
| TOTAL ASSETS | 30,991 | 41,124 | 33,331 |
| EQUITY AND LIABILITIES | 30.6.2013 | 30.6.2012 | 31.12.2012 |
| SHAREHOLDERS’ EQUITY | |||
| Share capital | 585 | 585 | 585 |
| Share premium reserve | 219 | 219 | 219 |
| Invested non-restricted equity fund | 24,171 | 20,277 | 20,247 |
| Retained earnings | -14,574 | 8,192 | 8,214 |
| Profit for the period | -2,641 | -11,308 | -21,948 |
| Equity attributable to equity holders of the parent | 8,703 | 17,965 | 7,317 |
| Non-controlling interests | 250 | 184 | 172 |
| TOTAL SHAREHOLDERS’ EQUITY | 8,953 | 18,150 | 7,489 |
| LIABILITIES | |||
| Non-current liabilities | 1,033 | 2,906 | 1,521 |
| Current liabilities | 21,004 | 20,067 | 24,320 |
| TOTAL LIABILITIES | 22,038 | 22,974 | 25,841 |
| TOTAL EQUITY AND LIABILITIES | 30,991 | 41,124 | 33,331 |
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY, EUR 1,000
A: Share Capital
B: Share premium reserve
C: Share issue
D: Invested non-restricted equity fund
E: Translation dirrerence
F: Retained earnings
G: Total equity attributable to equity holders of the parent
H: Non-controlling interests
I: Total equity
| A | B | C | D | E | F | G | H | I | |
| Shareholders’ equity at 1January 2012 | 585 | 219 | 0 | 20,313 | 86 | 8,045 | 29,248 | 200 | 29,448 |
| Profit for the period | -11,308 | -11,308 | -15 | -11,323 | |||||
| Other comprehensive income: | |||||||||
| Change in translation difference | 14 | 14 | 14 | ||||||
| Transactions with shareholders: | |||||||||
| Expenses for equity procurement | -36 | -36 | -36 | ||||||
| Share-based remuneration | 47 | 47 | 47 | ||||||
| Shareholders’ equity at 30 June 2012 | 585 | 219 | 0 | 20,277 | 101 | -3,126 | 17,965 | 184 | 18,150 |
| Shareholders’ equity at 1January 2013 | 585 | 219 | 0 | 20,247 | 75 | -13,810 | 7,317 | 172 | 7,489 |
| Profit for the period | -2,641 | -2,641 | 78 | -2,563 | |||||
| Other comprehensive income: | |||||||||
| Change in translation difference | 61 | 61 | 61 | ||||||
| Transactions with shareholders: | |||||||||
| Share issue | 4,229 | 4,229 | 4,229 | ||||||
| Expenses for equity procurement | -305 | -305 | -305 | ||||||
| Share-based remuneration | 42 | 42 | 42 | ||||||
| Shareholders’ equity at 30June 2013 | 585 | 219 | 0 | 24,171 | 136 | -16,409 | 8,703 | 250 | 8,953 |
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
| | 1.1.-30.6.2013 | 1.1.-30.6.2012 | 1.1.-31.12.2012 |
| Cash flow from operating activities | |||
| Profit for the period | -2,563 | -11,323 | -21,975 |
| Adjustments to cash flow from operating activities | |||
| Income tax | -570 | -690 | -3,043 |
| Depreciation and impairment | 1,455 | 11,511 | 16,823 |
| Financial income and expenses | 356 | 209 | 700 |
| Other adjustments | -19 | 46 | -13 |
| Change in provisions | -855 | 0 | 1,066 |
| Cash flow from operating activities before change in working capital | -2,196 | -247 | -6,441 |
| Change in working capital | -2,329 | 2,598 | 6,491 |
| Interest received | 131 | 75 | 79 |
| Interest paid | -445 | -309 | -796 |
| Tax paid | 160 | -275 | -372 |
| Net cash flow from operating activities | -4,680 | 1,840 | -1,039 |
| Cash flow from investing activities | |||
| Investments in tangible and intangible assets | 46 | -1,223 | -1,275 |
| Dividends received | 0 | 0 | 4 |
| Net cash flow from investing activities | 46 | -1,223 | -1,271 |
| Net cash flow before financing | -4,634 | 617 | -2,310 |
| Cash flow from financing activities | |||
| Increase in long-term borrowings | 0 | 0 | 4,415 |
| Repayment of long-term borrowings | -400 | -1,413 | -1,920 |
| Increase in short-term borrowings | 2,203 | 1,500 | 588 |
| Repayment of short-term borrowings | -733 | -935 | -1,740 |
| Proceeds from share issue | 4,229 | 0 | 0 |
| Expenses for equity procurement | -305 | -36 | -18 |
| Net cash flow from financing activities | 4,994 | -884 | 1,325 |
| Change in cash and cash equivalents | 363 | -267 | -989 |
| Liquid assets at the beginning of the period | 477 | 1,466 | 1,466 |
| Liquid assets at the end of the period | 840 | 1,227 | 477 |
CONSOLIDATED INCOME STATEMENT, QUARTERLY, EUR 1,000
| Q2/2013 1.4.–30.6.13 | Q1/2013 1.1.–31.3.13 | Q4/2012 1.10.–31.12.12 | Q3/2012 1.7.–30.9.12 | Q2/2012 1.4.–30.6.12 | |
| Turnover | 10,112 | 10,799 | 12,786 | 9,977 | 16,428 |
| Operating expenses | -10,973 | -12,715 | -16,060 | -17,216 | -17,766 |
| OPERATING PROFIT BEFORE GOODWILL IMPAIRMENT | -861 | -1,916 | -3,273 | -7,239 | -1,338 |
| Goodwill impairment | 0 | 0 | -2,000 | 0 | 0 |
| OPERATING PROFIT | -861 | -1,916 | -5,273 | -7,239 | -1,338 |
| Financial income and expenses | -257 | -99 | -309 | -183 | -116 |
| Profit before tax | -1,117 | -2,015 | -5,582 | -7,422 | -1,454 |
| Income tax | 183 | 386 | 1,162 | 1,190 | 367 |
| PROFIT FOR THE PERIOD | -934 | -1,629 | -4,420 | -6,232 | -1,087 |
CHANGES IN FIXED ASSETS, EUR 1,000
| Goodwill | Intangible assets | Property, plant and equipment | Available-for-sale investments | Total | |
| Carrying amount at 1 January 2012 | 23,647 | 5,138 | 3,391 | 110 | 32,286 |
| Additions | 878 | 1,579 | 2,457 | ||
| Changes in exchange rates | 2 | 7 | 9 | ||
| Disposals and transfers | -9 | -9 | |||
| Impairment | -9,200 | -9,200 | |||
| Depreciation for the period | -1,394 | -917 | -2,311 | ||
| Carrying amount at 30 June 2012 | 14,447 | 4,625 | 4,051 | 110 | 23,233 |
| Carrying amount at 1 January 2013 | 12,447 | 2,646 | 3,410 | 19 | 18,522 |
| Additions | 18 | 219 | 237 | ||
| Changes in exchange rates | -1 | -1 | |||
| Disposals and transfers | -25 | -5 | -30 | ||
| Impairment | 0 | ||||
| Depreciation for the period | -587 | -868 | -1,455 | ||
| Carrying amount at 30 June 2013 | 12,447 | 2,078 | 2,735 | 14 | 17,273 |
FINANCIAL RATIOS
| 1.1.–30.6.2013 | 1.1.–30.6.2012 | 1.1.–31.12.2012 | |
| Earnings per share, diluted, EUR | -0.08 | -0.51 | -1.00 |
| Earnings per share, EUR | -0.08 | -0.51 | -1.00 |
| Equity per share, EUR | 0.25 | 1.19 | 0.48 |
| Operating cash flow per share, diluted, EUR | -0.14 | 0.08 | -0.04 |
| Return on investment, per cent | -24.3 | -69.7 | -81.6 |
| Return on equity, per cent | -62.4 | -95.2 | -119.0 |
| Operating profit ? turnover, per cent | -13.3 | -34.6 | -42.8 |
| Net gearing, per cent | 146.0 | 47.9 | 161.95 |
| Equity ratio, per cent | 28.8 | 44.2 | 22.5 |
OTHER INFORMATION
| | 1.1.– 30.6.2013 | 1.1.– 30.6.2012 | 1.1.– 31.12.2012 |
| PERSONNEL Employees, average | 542 | 974 | 824 |
| Employees, at the end of the period | 502 | 894 | 610 |
| COMMITMENTS, EUR 1,000 | 30.6.2013 | 30.6.2012 | 31.12.2012 |
| Collateral for own commitments | |||
| Corporate mortgages | 19,800 | 19,800 | 19,800 |
| Leasing and other rental commitments | |||
| Falling due within 1 year | 2,759 | 5,025 | 2,726 |
| Falling due within 1–5 years | 4,775 | 1,546 | 3,408 |
| Falling due after 5 years | 0 | 0 | 243 |
| Total | 7,534 | 6,571 | 6,377 |
| Nominal value of interest rate swap agreement | |||
| Falling due within 1 year | 0 | 1,062 | 0 |
| Falling due within 1–5 years | 5,270 | 1,221 | 5,270 |
| Falling due after 5 years | 0 | 0 | 0 |
| Total | 5,270 | 2,284 | 5,270 |
| Fair value | -45 | -29 | -87 |
CALCULATION OF KEY FIGURES
Diluted earnings per share = profit for the period ? number of shares, adjusted for issues and dilution, average
Earnings per share = profit for the period ? number of shares, adjusted for issues, average
Shareholders’ equity per share = shareholders’ equity ? number of shares, undiluted, on the closing date
Cash flow from operating activities, per share, diluted = net cash flow from operating activities ? number of shares, adjusted for issues and dilution, average
Return on investment = (profit before taxes + interest expenses + other financial expenses) ? (balance sheet total ? non-interest-bearing liabilities, average) × 100
Return on equity = net profit ? shareholders’ equity, average × 100
Gearing = (interest-bearing liabilities – liquid assets) / shareholders’ equity × 100
